The mill will continue to produce office paper for M-real until the end of 2008.
It will then cease to produce paper and be switched over to production of raw material for corrugated board.
M-real chief executive Mikko Helander said: "We are streamlining our office paper production by concentrating it on the newer mills.
"The continuation of the present production in the New Thames mill would require major investments."
DS Smith group communications manager Peter Aubusson said there would be no immediate changes to staffing, although there would eventually be a shuffle in the process of converting the machine.
M-real's New Thames mill paper machine has an annual capacity of 230,000 tonnes of office paper. The mill employs 280 people and has sales of £119m (€160m).
Have your say in the Printweek Poll
Related stories
Latest comments
"Does that mean we'll have to think up a new name for fine white-glazed porcelain ceramics? How about Spode? Or is that a bit too, well, English?"
"“Eucalyptus globulus is five to seven times more productive than Nordic Pine and requires significantly less wood (up to 40% less) to produce the same amount of paper."
"The company added..."
"Hello Mark,
Fantastic! Thanks for sharing.
Best regards,
Jo"
Up next...
Extensive industry track record
James Cropper appoints new MD at paper wing
Integrated mega-site
Stora Enso starts up new consumer board line in Oulu
£3.5m deal
Software Circle acquires app developer
Precision Proco print job